{"id":266328,"date":"2025-11-20T06:58:05","date_gmt":"2025-11-20T07:58:05","guid":{"rendered":"https:\/\/www.premium-partners.net\/?p=266328"},"modified":"2025-11-22T16:09:12","modified_gmt":"2025-11-22T16:09:12","slug":"how-to-select-suitable-offshore-products-for-your-needs","status":"publish","type":"post","link":"https:\/\/www.premium-partners.net\/fr\/builder\/how-to-select-suitable-offshore-products-for-your-needs\/","title":{"rendered":"How to select suitable offshore products for your needs"},"content":{"rendered":"

This post<\/a> was originally published on this site<\/a><\/p>

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South Africa is often described as the world in one country because of its scenic diversity. The same can be said of its investment landscape, which offers a broad range of opportunities right here at home. Having the world in your investment pocket is advantageous, as it allows you to diversify your investment portfolio across geographies, currencies, market sectors, and asset classes.<\/p>\n

 <\/b>Offshore products<\/strong><\/p>\n

There are various ways to access international markets or offshore-based investments. South African investors can gain exposure through a range of investment funds and offshore product wrappers. Let\u2019s look at some of the choices at your fingertips.<\/p>\n

Rand-denominated offshore funds (Feeder funds)<\/strong><\/p>\n

Feeder funds are local funds that invest directly into global unit trust funds. They are available through local investment platforms (LISPs), making them an easy and familiar option for investors. The investment returns and capital gains on these investments are denominated in rands and are therefore influenced by exchange rate fluctuations.<\/p>\n

Direct offshore investments \u2013 \u2018DIY\u2019 brokerage accounts (Bonds, shares, and exchange-traded funds)<\/strong><\/p>\n

Investors can also access foreign-domiciled assets directly through offshore securities platforms offered by local firms. These platforms allow you to \u2018externalise\u2019 your funds \u2013 i.e., to invest your funds offshore \u2013 using your annual R1 million discretionary allowance or R10 million foreign investment allowance granted by the South African Reserve Bank (SARB). Returns and taxes for these investments are calculated in the applicable foreign currency, which means that investments in these products may be liable for foreign estate taxes.<\/p>\n

Offshore unit trusts<\/strong><\/p>\n

Offshore unit trusts (sometimes referred to as offshore funds) can be accessed through offshore investment platforms and are subject to the same SARB foreign investment limits as those that apply to investments into feeder funds via a local investment platform. When investing via an offshore platform, you can expect similar product wrappers and services (such as reporting, compliance, and administration) as would be the case for a local platform.<\/p>\n

Exchange-traded funds (ETFs)<\/strong><\/p>\n

ETFs are listed investment instruments that track indices (e.g., S&P 500, MSCI World), sectors, or asset classes. Investors can access ETFs via direct offshore accounts or through local platforms that offer offshore exposure. This product option offers low-cost, passive exposure to global markets.<\/p>\n

Managed offshore share portfolios<\/strong><\/p>\n

For maximum control and customisation, these portfolios include direct offshore equities and are typically managed by a discretionary portfolio manager (DPM) or constructed by the investor with professional guidance \u2013 as in the case of a personal share portfolio (PSP).<\/p>\n

Foreign property investments<\/strong><\/p>\n

Buying a property directly in a foreign country gives you exposure to that specific property investment market. These investments sometimes come with advantages such as residency or tax benefits.<\/p>\n

Offshore bank accounts<\/strong><\/p>\n

Where allowed, and depending on the jurisdiction, this option is a useful investment tool for holding foreign currency and facilitating international transactions. They are often a starting point for offshore investments.<\/p>\n

Considerations in choosing the appropriate vehicle<\/strong><\/p>\n

There is no one-size-fits-all option for offshore investments. Selecting the most appropriate option for your needs begins with considering what is important to you and what you feel comfortable with:<\/p>\n